GameFly has a shipping center at Los Angeles, so you're going to get games very quickly. The moment they scan them in for sending them back at the post office, they get notified and send you the next title. I live around Dallas, and the center here is in Austin, so yeah, I have a game returned Monday, next one comes on Thursday/Friday. Not bad.
And yeah, they're really good about damaged stuff. Just report it, and they'll send the next game automatically.
I've been a customer since 2010. New games are still a little hard to get first because they have more subscribers now.